Interior Secretary Doug Burgum said on Monday that Venezuelan coal could be part of energy deals with the United States, indicating the fuel might be exported and could also be deployed for power generation inside Venezuela.
Speaking at a press conference in Houston, Burgum said coal could be used for export and also could support local electricity needs. He emphasized that Venezuela will require additional power capacity for domestic consumption as it undertakes efforts to rebuild its electrical grid.
The secretary's remarks come amid a regulatory change affecting U.S. engagement with Venezuelan state coal producers. The Office of Foreign Assets Control amended a license this month to clarify that U.S. companies are permitted to do business with those state coal producers.
Venezuela has not exported coal in recent years, a fact Burgum noted while outlining the potential roles the resource could play. Beyond export prospects, he highlighted the possibility that coal might be used within Venezuela to bolster generation as the country's power infrastructure is repaired.
The combination of the Interior Secretary's statement and the OFAC license amendment frames two distinct avenues for coal: international shipments and domestic electricity supply. Burgum's comments linked both uses to the broader task of restoring reliable power for Venezuelan consumers.
Details on timelines, volumes, commercial partners, or specific projects were not provided in his remarks. The comments centered on the potential uses of Venezuelan coal and the regulatory clarification that could enable U.S. firms to engage with Venezuela's state coal industry.
Summary
Interior Secretary Doug Burgum said on Monday that Venezuelan coal could be incorporated into energy arrangements with the United States, either as an export commodity or as fuel for domestic power generation while Venezuela rebuilds its electrical grid. A recent OFAC license amendment clarified that U.S. companies can do business with Venezuela's state coal producers. Venezuela has not exported coal in recent years.
Key points
- Venezuelan coal could be exported to or used in cooperation with the United States.
- The coal might also be used domestically in Venezuela to support power generation during grid reconstruction.
- OFAC amended a license this month to clarify that U.S. firms may engage with Venezuela's state coal producers, opening a possible pathway for commercial activity.
Risks and uncertainties
- It is unclear when or whether Venezuela will resume coal exports, given it has not exported coal in recent years - impacting mining and export sectors.
- Although OFAC clarified permissible activity this month, the amendment does not by itself guarantee commercial deals or resolve operational and contractual hurdles for U.S. firms - affecting energy traders and mining investors.
- The scale and timing of additional domestic power needs as Venezuela rebuilds its electrical grid are not specified, creating uncertainty for power generation planners and equipment suppliers.